8-KFinancial Events

ALTRIA GROUP, INC. 8-K Report, Financial Obligation (Jun 2, 2005)

Filed June 2, 2005For Securities:MO

Summary

This Form 8-K filing by Altria Group, Inc. (MO) on June 2, 2005, primarily reports on financial obligations related to its subsidiary, Philip Morris International Inc. (PMI), and its subsidiary FTR Holding S.A. (FTRH). Specifically, it details a credit agreement established on May 12, 2005, involving a senior unsecured 5-year revolving credit facility and a senior unsecured 3-year term facility. These facilities are not guaranteed by Altria and carry no obligations for the parent company. The key event reported is FTRH's borrowing of EUR 1,025,000,000 under the revolving credit facility on May 27, 2005. This borrowing was in connection with the acquisition of PT HM Sampoerna Tbk. Including prior borrowings, FTRH now has an aggregate outstanding amount of EUR 3,525,000,000 under these facilities. Investors should note that these obligations are solely borne by PMI and its subsidiary FTRH, not by Altria directly.

Key Highlights

  • 1Philip Morris International Inc. (PMI), a subsidiary of Altria, entered into a credit agreement for a 5-year revolving credit facility and a 3-year term facility.
  • 2These facilities are senior unsecured and were established on May 12, 2005.
  • 3Altria Group, Inc. itself has no guarantee or obligation related to these credit facilities.
  • 4FTR Holding S.A. (FTRH), a wholly-owned subsidiary of PMI, is designated as a borrower under these facilities.
  • 5On May 27, 2005, FTRH borrowed EUR 1,025,000,000 under the revolving credit facility.
  • 6This borrowing was related to the acquisition of PT HM Sampoerna Tbk.
  • 7The aggregate amount borrowed by FTRH under these facilities, including previous borrowings, reached EUR 3,525,000,000 as of May 27, 2005.

Frequently Asked Questions

This 8-K filing primarily reports on the creation of financial obligations by Altria's subsidiary, Philip Morris International Inc. (PMI), through its subsidiary FTR Holding S.A. (FTRH), specifically related to a credit facility used for an acquisition.

No, the filing explicitly states that the credit facilities are not guaranteed by Altria Group, Inc., and Altria has no obligations thereunder. The financial obligations rest solely with its subsidiaries, PMI and FTRH.

On May 27, 2005, FTRH borrowed EUR 1,025,000,000 under its revolving credit facility. This borrowing was in connection with the acquisition of PT HM Sampoerna Tbk.

As of May 27, 2005, including previous borrowings, FTRH had an aggregate amount of EUR 3,525,000,000 borrowed under the credit facilities.